Complaint Review: Jackson Hewitt Tax Service - Jackson Michigan

I also went to Jackson Hewitt to file my 2007 taxes and I had a 1099 as well.  I went to them specifically because I had the 1099 and wanted to make sure my taxes were done correctly.  The person who did my taxes ALSO 'forgot' to enter my 1099 info and I now owe the IRS $1300.  Now to one of the others comments about it being something we owed the IRS regardless, I get that and am fully capable of understanding that.  However, when you go to a professional place to get your taxes done and are made to feel secure that it will be done correctly only to find out that you owe the IRS 2 years later, it will make your blood boil.  I dont have $1300 sitting around to pay the IRS.  I would have much rather given them the money when I had it at tax time and been done with it.  If it is my responsibility to go through my taxes AFTER a supposedly professional tax person did them, why the HECK did i go there???  Bottom line is that jackson hewitt needs to find more competent human beings to do taxes for the public.

Robert in Buffalo, you said: You may be correct regarding your STATE income taxes and state regulations, but the IRS does require that you declare the CORRECT number of exemptions on wages and unemployment benefits for federal income taxes. I have to disagree. From the IRS Publication 919 (2008), How Do I Adjust My Tax Withholding? You should try to have your withholding match your actual tax liability. If not enough tax is withheld, you will owe tax at the end of the year and may have to pay interest and a penalty. If too much tax is withheld, you will lose the use of that money until you get your refund. Always check your withholding if there are personal or financial changes in your life or changes in the law that might change your tax liability." The IRS encourages you to claim sufficient exemptions to balance what you owe vs. what you pay. They do not require you to declare a "correct" number of exemptions. Of course, there are provisions for fraud, but this is not the case. If you feel different, please cite your source. For Devvyn, sorry, but you got very bad advice from JH. From the IRS website: Topic 418 - Unemployment Compensation "Unemployment compensation is includible (sic) in gross income. You must report unemployment compensation on line 19 of Form 1040, line 13 of Form 1040A, or line 3 of Form 1040EZ. If you received unemployment compensation during the year, you should receive Form 1099-G (PDF) showing the amount you were paid. Any unemployment compensation received during the year must be included in your income, unless you contributed to the fund. Unemployment benefits from a private fund (or, in some cases, public fund) to which you voluntarily contribute are taxable only if the amounts you receive are more than your total payments into the fund. This taxable amount is not unemployment compensation; it is reported as other income on Form 1040 (PDF)." Anything you received in unemployment compensation is taxable. Because you didn't have taxes taken out means you have to pay more when you filed. As you found out, even if JH did your tax return, you are responsible for all the taxes. Unfortunately, JH screwed up and screwed up badly. Anyone with basic knowledge of income tax preparation should have known Unemployment benefits are taxable. Do they have any kind of guarantee regarding their accuracy of the return? At the very least, they should provide you with a refund of your tax preparation/filing/"loan" fees. I would go back to the office, demand to speak to the office manager, and have a discussion regarding their "human error." If they refuse, you have the option of small claims court. Good luck!!

""Clearly you did not read the complaint properly. I filed my 1099 (Which IS unemployment) I gave it to her, the only thing I didn't do is claim taxes, it is NOT required. I claimed the income. It would have no bearing on the fact that she 'forgot' to file it."" You may be correct regarding your STATE income taxes and state regulations, but the IRS does require that you declare the CORRECT number of exemptions on wages and unemployment benefits for federal income taxes. Technically, you violated IRS rules by NOT declaring a with-holding for your employment benifits. Will you be prosecuted for this-not likely. I'm old enough to remember the "good ole days" when folks would complete a w-4 with 0 exemptions and then get a large "refund" check after filing their income tax. The IRS changed the rules some years ago and it is required to declare the correct number of exemptions for more accurate with-holding.

Actually in reality it is the taxpayer's problem/fault not the company. It is the responsibilty of the taxpayer to ensure that ALL information on their return is true and correct. Hence why there is a penalties of perjury statment that you sign. When you have your taxes prepared you should be sure it is done correctly before filing them. Also, it is the responsibility of the taxpyer to ensure that they had enough taxes withheld to cover their taxes. $5,000 WORTH OF TAXABLE INCOME AND NO TAXES WITHHELD? that should of been in a sign in the first place!

Clearly you did not read the complaint properly. I filed my 1099 (Which IS unemployment) I gave it to her, the only thing I didn't do is claim taxes, it is NOT required. I claimed the income. It would have no bearing on the fact that she "forgot" to file it. Your comment is posed as I didn't file it and I am trying to be "sneaky" which I am not. The information was there, she neglected to do her job. FILE ALL W-2's 1099's and so on. I understand the return would have been different, but had she done the job properly this wouldn't have happened. Bottom line when you claim to be a "professional" you act professional, when there is an error on your part, you correct it. It was in no way shape or form my fault that she forgot to key in the numbers.

Jackson Hewit did not rip you out of $1320, it would have been money you owed the IRS anyways. If it was reported on your taxes you would have received a refund of about $2600-$2700, instead of $4000. No tax preparer can make taxes go away if you owe them. You stated you "I didn't file taxes on my unemployment, I really needed the money, is this going to effect my tax return greatly?" It is not Jackson Hewit's fault that you didn't want to include your unemployment. Even if she stated it would effect your tax return, would you have included it since you "really needed the money"? On the Stimulus Package(Rebate Check). If you owe money you are correct you won't get it. But it gets deducted from the money that you owed. There is no RipOff here, the only thing that happened is that instead of paying the $1300 when you filed the taxes(and receiveing a lower refund), you got the bigger refund but now owe the money back. The end result is the same. The only thing that Small Claims court would do is possibly get the tax preparation fee and the $43 dollars returned to you. It won't get JH to pay the tax for you.